Join To Receive Our 'New Issue' Alert
Email:
For Email Newsletters you can trust

New REIT Farmland Partners Now Trading

Share

April 14, 2014  10:14 pm

Farmland Partners, a new REIT, devoted to the ownership of farmland primarily in the corn belt of the United States, came to market last week at a price of $14/share.  Demand for the shares was quite weak and on the first day of trading the share price closed at $12.98.

We had written about this IPO previously and there is not a single facet of the deal that is fair for the investor--there will be little FFO generated and the small scale of the IPO means they will not reach the scale required to make meaningful income.  In our opinion these shares will act like Silver Bay Property Trust (a single family residential REIT)--a slow drift lower, with very little chance of positive FFO anytime soon.

The shares are trading under the symbol FPI.  The offering documents can be read here.  We strongly urge anyone considering these shares read the offering information closely.

We have added the shares to the REIT pages.

A Good Day For 'Rearranging" a Bit

April 14, 2014  2 pm

As we had noted we were looking to sell Digital Realty Trust (Ticker:DLR), a large, quality REIT from our portfolio and we have done so.  We only had 200 shares of this issue and we had a reasonable 6% gain (plus 1 dividend) so it was ok to sell. The primary reason we sold is that DLR is a fairly volatile security, which we dislike and it is our thought that even though it is a quality REIT it seems to be 'out of favor' and seems to have an easier time falling then rising.  Additionally we had expended almost our entire cash account and we wanted to add a bit of cash to the till.

With the sale of DLR we had some funds to purchased a small 200 share position in new issue Legacy Reserves 8% cumulative preferred which began trading today.  With the sale of DLR and the purchase of Legacy Reserves preferred we raised the portfolio current yield by 3 basis points--not much, but over the course of a year one can gain significant amounts of increased yields.

 

 

From the Blog

New REIT Farmland Partners Now Trading
NEW MLP Enable Midstream Partners
REIT Public Storage Remains the Preferred Stock King
A Good Day For "Rearranging" a Bit
Legacy Reserves LP Prices Fixed to Floating Rate Preferreds - Trade OTC Today
Trillion-Dollar Firms Dominating Bonds Prompting Probes in U.S.
Last Week, The Coming Week and Other Stuff
Income Issues Hang in There
New Seaspan Notes Now Trading
Top economists warn Germany that EMU crisis as dangerous as ever
Houston Fills With Crude Oil That Can’t Be Shipped Out
We Have Executed our Common Stock Hedge
GasLog Ltd. Announces Filing of Registration Statement For MLP
New Seaspan Notes Now Trading
Will Earnings Confirm Stock Downdraft?
Did the Light Bulb Finally Go On Friday?
Hold on To Your Hats - Fridays Job Report Could Be a Market Mover
Up, Up and Away We Go!!
Looking at the 2013/2014 Static Junk (or Unrated) Model
How The Supreme Court Could Stop the 401(k) Rip-off
3 Months In - A Portfolio Review
Seaspan Prices $25 Note Issue
Economy Not Too Bad--Treasury Market Says Bullshit
Seaspan to Sell a $25 Debt Issue
China’s Developers Face Shakeout as Easy Money Ends: Mortgages
Banks in Chinese city show stacks of cash to reassure depositors
Can LINN Energy Cover Its Distribution?
Stay Away From this New Farm Land REIT
Preview of the Week Ahead
Farmer Mac to Sell Non Cumulative Preferred Stock (Updated)
Farmer Mac to Sell Non Cumulative Preferred Stock
Digital Realty Trust Preferred Priced
Red Everywhere. Looking for Excuses to Sell
Digital Realty Trust to Sell a Preferred
As credit tightens at home, Chinese sell Hong Kong luxury real estate
Another MLP Warning Article
Ticking Timebomb: Moscow Moves to Destabilize Eastern Ukraine
Risks Mount for Retirees in Limited Energy Partnerships
Another Exciting Week Ahead
Good Economic Numbers, but Markets Plunge on Fear. Interest Rates Fall on Flight to Safety
Equities Hang Tough Through Uncertainties. Interest Rates Move Lower
Paranoia leads Vladimir Putin to the point of no return
11 Ugly Charts That Confirm China's Dramatic Slowdown
China's Li Keqiang warns investors to prepare for wave of bankruptcies
Global Debt Exceeds $100 Trillion as Governments Binge, BIS Says
Barrons - Energy Investors Suggest 6 MLPs to Buy Now
Outlook for Apartment REITs in 2014
MarkWest's Distribution Is Too High
REITs Up Nearly 5% in February
How BDC Taxes Work
Subscribe to From the Blog